Delaware official: State job layoffs not current option

Published: Oct 16, 2002 - 11:52:27 PM EDT

By Joe Rogalsky, Staff writer

DOVER - Though all options remain possible, Delaware's budget chief said Wednesday that Gov. Ruth Ann Minner is not looking now at layoffs to cover a projected revenue shortfall.
Jennifer W. Davis, state budget director, said Gov. Minner has asked that other reductions be explored first. Those cuts include decreasing discretionary spending, such as travel and supplies.
"The focus has been on cost containment," Mrs. Davis said. "The governor has told me to focus on that side of the house."
Gov. Minner and her budget staff are trying to bridge a predicted $95 million revenue shortfall this fiscal year. She has already announced $10 million in cost savings, including about $6.5 million in budget cuts.
The next round of cuts will likely be announced "late next week," Mrs. Davis said.
When the revenue shortfall was projected last month, Gov. Minner announced a plan to cover the deficit by slashing $35 million from the operating budget, establishing hiring and purchasing reviews and continuing other cost-saving initiatives.
Since Gov. Minner instituted the hiring review, only one person has been hired - a 911 dispatcher. Mrs. Davis said there are about 1,200 vacant state government positions.
A union leader representing public employees said other options could be considered before the state considers laying off workers.
Michael A. Begatto, executive director of the American Federation of State, County and Municipal Employees' Council 81, said his organization has been talking to lawmakers about ways to raise state revenue. The local AFSCME represents about 3,500 state workers.
"We'll do everything we possibly can to work with the governor and General Assembly to generate additional dollars so the slower economy doesn't impact state employees," Mr. Begatto said.
"We're hoping that some things in January will change when the legislature is back in session."
While opposing a sales tax, Mr. Begatto said the state should consider raising the cigarette tax, generating more revenue from slot machine proceeds or possibly not copying some recent federal tax cuts.
The head of the state teachers' union said that organization is closely monitoring the budget situation.
"We have many concerns as you might imagine," said Delaware State Education Association president Barbara Grogg.
"The accountability initiatives that are supposed to be put into place all cost money."
She said state funds were already spread thin and that new cuts would present some difficult choices.
Ms. Grogg said she is particularly worried about how potential cuts would affect students and teachers in terms of accountability.
She said that if professional-development funds, tuition reimbursements and extra-time money, among other things, are cut, it could limit a teacher's effectiveness, which would affect the quality of education students would receive.
"There are just so many new initiatives being put in place by the legislature at a time of no money," Ms. Grogg said. "It's really difficult to continue fighting for what really makes a difference in education when there is no more money."
She said she has not heard any discussion about the possibility of teacher or paraprofessional layoffs and that she hopes they are not necessary.
Edward Simon, an analyst with the state Department of Labor, said the state work force has dropped from 18,700 noneducational employees last year to 17,300 as of last month.
The reduction, he said, can be attributed to a slowing economy that has caused many states to slash budgets and some to cut jobs.
Maryland faces a $1.7 billion shortfall this fiscal year, and some lawmakers there have suggested reducing funding to colleges and universities.
In Virginia, Gov. Mark Warner announced Tuesday plans to whack $858 million from the state's $50 billion biennial budget.
The cuts include laying off 1,837 state workers, closing Department of Motor Vehicles offices one day per week, giving colleges and universities the choice of hiking tuition or laying off staff members and reducing community services by 10 percent.
Virginia's shortfall could reach $2 billion over the next two years. Gov. Warner and the General Assembly already closed a $3.8 billion budget hole earlier this year.
Staff writer Jason Cooke, The Associated Press and the Washington Post-Los Angeles Times News Service contributed to this article.
Joe Rogalsky can be reached at 741-8226 or jrogalsky@newszap.com.